The latest fund infusion by investors marks the 53rd consecutive month of net inflows into the segment

PTI New Delhi

Equity-oriented mutual funds garnered a net inflow of Rs 42,702 crore in July, making it the highest-ever monthly tally for the segment, propelled by contributions from thematic and flexi cap funds, despite heightened market volatility plagued by tariff war with the US. This was a sharp 81% surge from Rs 23,587 crore inflow registered in June, suggesting a clear resurgence in domestic risk appetite. Also, the latest fund infusion by investors marks the 53rd consecutive month of net inflows into the segment.

Additionally, a healthy growth was witnessed in SIP (Systematic Investment Plan) inflow at Rs 28,464 crore during the month under review, an increase from Rs 27,269 crore in June, data released by the Association of Mutual Funds in India (Amfi) showed on Monday. 

"Despite uncertainties due to tariff war, India's growth story remains intact -- which is evident in strong inflow in equities -- backed by benign inflation, improved liquidity, improved savings," said Venkat N Chalasani, CEO of Amfi.

Himanshu Srivastava, Principal, Manager Research at Morningstar Investment Research India, believes that intermittent market corrections during the month on the back of tariff war with the US, as well as ongoing geopolitical tension, which offered investors attractive entry points.

Among equity-oriented mutual fund categories, Sectoral or Thematic funds topped the charts with a net inflow of Rs 9,426 crore, fuelled by the launch of seven new schemes that collectively garnered Rs 7,404 crore. This was followed by Flexi-Cap funds which attracted Rs 7,654 crore, supported by their versatile mandate to capture opportunities across market capitalisations, which continues to resonate with investors.